RIL reverses lower from a key resistance

RIL surged over 3 per cent last week. It tested the resistance at ₹861 and has come off from there, giving up some of the gains made during the week. Inability to bounce above ₹850 this week may keep it under pressure. Support is at ₹833, which is likely to be tested in the initial part of this week. A bounce from there can take RIL higher to ₹865 or ₹867 — a key trend resistance. If the stock manages to surpass this hurdle, it can move higher to ₹900. Since the stock has been on a strong and continuous surge, a pull-back move on the back of profit-booking cannot be ruled out after testing ₹900. Such a pull-back move can take the stock lower to ₹850 and ₹830 thereafter. On the other hand, if RIL breaks below ₹833 in the coming days, it can decline further. A corrective fall to ₹810 or ₹800 is likely in such a scenario. A further break below ₹800 will increase the likelihood of the fall extending to ₹785 or even ₹770 thereafter. Inability to bounce from ₹770 will see the fall extending to ₹740 or ₹735 levels.

Read the rest of this article by Signing up for Portfolio.It's completely free!